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J. Jill makes move from the mail to the mall

By Kimberly Pfaff

J. Jill’s retail stores are decorated to evoke serenity and tranquility.

Across the country, women over 35 are about to find a welcome surprise when they venture into select upscale malls: a specialty clothing store designed specifically for them. J. Jill, the catalog and Internet retailer known for its natural-fiber apparel depicted in serenely evocative settings, is now expanding its retail reach with brick-and-mortar stores.

The Quincy, Mass.-based firm launched its first store in November 1999 in Boston’s Natick Mall, and has since opened a handful of locations in Massachusetts, Rhode Island and Pennsylvania. Now, however, J. Jill is embarking on a nationwide expansion. Targeting upscale malls and freestanding locations in key markets, the firm is opening 10 to 15 stores in 2000, with an additional 30 to 50 planned for 2001. Among the locations scheduled to open this year are: Water Tower Place, Chicago; Mall of America, Bloomington, Minn.; Pacific Place, Seattle; Tysons Corner, McLean, Va.; and FlatIron Crossing, Broomfield, Colo.

J. Jill executives declined to be interviewed for this article. However, according to a company statement, the firm believes the market potential exists for 300 to 350 stores nationwide. Analysts say that’s not unrealistic, given the real void in specialty apparel shops for upper-income women ages 35 and up. At a time when the population is growing older, they note, youth-obsessed U.S. marketers are still pumping out retail formats targeting teens and 20-somethings, from Wet Seal and Abercrombie & Fitch to bebe and Pacific Sunwear.

“Not only does J. Jill have a specific focus, but it’s targeted to a demographic that very few other brands focus on,” said Todd Slater, a retail analyst with New York City-based investment bank Lazard Frères. “And it seems to me it’s a good demographic to appeal to — it’s a demographic with money to spend, they’re looking for more casual but sensible ways to dress, and they’re not being catered to enough in my opinion, in this channel.”

“I think most women will walk in and say, ‘Where have you been?’” affirmed Alfred E. Ferris, CLS, leasing manager for Southfield, Mich.-based Forbes/Cohen Properties, which is opening a J. Jill store this September at The Somerset Collection in Troy, Mich., and another at The Gardens of The Palm Beaches (Fla.) in 2001. “There was no representation for this customer anywhere in the country at the individual store level in regional malls. They are an answer long in coming.”

Certainly, the J. Jill catalog has developed a devoted following of women, who appreciate the firm’s relaxed, flowing silhouettes rendered in soft-hued fabrics such as linen, cotton, rayon and silk. Many items feature artisan-inspired details such as embroidered or crocheted trim.

With 1999 sales of $250 million, J. Jill has clearly found its niche. So, how important will retail stores be to a company that has already made its mark with clicks and catalogs? Like many retailers, J. Jill is out to capture the most business through a lucrative three-pronged approach, incorporating clicks, bricks and catalogs. They may be a latecomer to malls, but industry watchers say the firm’s strategy is sound.

“They’re recognizing that at least for a long time to come, bricks and mortar are still a major factor in distribution,” said Stanley L. Eichelbaum, SCMD, president of Marketing Developments, a Cincinnati-based consulting firm. “And if they want an expansive market, their current avenue is rather limited.”

“It’s unequivocally the correct direction for them to take, and there’s no conflict [with their other businesses],” agreed Slater at Lazard Frères. “In fact, the most successful businesses are direct-to-consumer businesses, and almost all employ a three-legged approach — sales through stores, catalogs and e-commerce. Successful companies have employed this strategy over time. And these types of vertical companies typically have the highest return on direct capital investment.”

For shopping center executives, the fact that J. Jill is a name brand with a built-in, upscale customer base is just another plus. So far, initial reports have been positive.

“They have a tremendous catalog following, and they’ve brought an already strong customer base to the center,” said Robert Michaels, president of General Growth Properties, Chicago, which opened the very first J. Jill store at its Natick Mall. “Their customer fits the Natick profile extremely well — well-educated, higher income. We’re talking to them about a number of other opportunities.

“Their sales productivity has been extraordinary,” he added. “The mall does approximately $500 per square foot, and they’ll certainly do or exceed the mall average.”

“We’re ecstatic to have J. Jill here; they’re going to do very well here,” said Robert Guerra, mall manager of The Westchester in White Plains, N.Y., which opened a 5,500-square-foot store last month. “Our customers are really fashion-forward, and they’re attracted to the new and unique. We’re on the cutting edge, and we’re getting the catalog or Internet retailers who are going into bricks and mortar, like Delia’s and Steve Madden. J. Jill is just another example.”

But if J. Jill’s customer focus falls outside the norm, so does the company’s store design, which seeks to recreate the peaceful, evocative feel of its catalog pages.

“As with all of our encounters with our customer, we strive to evoke a relaxed, natural feeling, providing her with at least a temporary escape from her hectic everyday life,” according to a company statement. “Our strategy with retail stores … is to reinforce the creative and sensory attachment we have established with our customers.”

As a result, the store entrance features a 12-foot entryway that acts as a comfort zone between the mall and the store’s serene interior. Inside, a tranquil water fountain provides a calming backdrop as customers browse for clothing among flooring and fixtures made from organic materials such as quarry stone, bamboo and mahogany. The firm has also eschewed harsh fluorescent lights in favor of homier ambient lighting, achieved through wall sconces, chandeliers and table lamps.

“It doesn’t feel as if you’re walking into a store, but rather someone’s really great home,” related Ferris. “It’s just a beautiful environment.”

However, the stores do feature at least one high-tech element: Customers can connect to the J. Jill Web site, www.jjill.com, to purchase items that are either out of stock or offered only through the catalog.

All in all, say industry watchers, the firm’s blend of quality, natural-fiber clothing, natural ambience and high-tech shopping ease should prove enticing.

“Taking off my real estate hat for a moment,” Ferris of Forbes/Cohen noted, “as a man shopping, I would feel comfortable shopping for my wife there.”